1 Safe-and-Steady Stock on Our Buy List and 2 to Ignore

A stock with low volatility can be reassuring, but it doesn’t always mean strong long-term performance. Investors who prioritize stability may miss out on higher-reward opportunities elsewhere.

Finding the right balance between safety and returns isn’t easy, which is why StockStory is here to help. Keeping that in mind, here is one low-volatility stock providing safe-and-steady growth and two that may not keep up.

Two Stocks to Sell:

QCR Holdings (QCRH)

Rolling One-Year Beta: 0.74

With roots dating back to 1993 and a name reflecting its original Quad Cities market, QCR Holdings (NASDAQGM:QCRH) operates four community banks across Iowa and Missouri, providing commercial, consumer banking, and trust services to businesses and individuals.

Why Are We Hesitant About QCRH?

1. Sales trends were unexciting over the last two years as its 2.7% annual growth was below the typical bank company
2. Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 29 basis points (100 basis points = 1 percentage point)
3. High debt servicing costs relative to its earnings leave little margin for error in meeting its financial obligations

QCR Holdings’s stock price of $64.32 implies a valuation ratio of 1x forward P/B. If you’re considering QCRH for your portfolio, see our FREE research report to learn more.

PNC Financial Services Group (PNC)

Rolling One-Year Beta: 0.91

Tracing its roots back to 1852 when Pittsburgh's industrial boom demanded stronger financial institutions, PNC (NYSE:PNC) is a diversified financial institution that provides retail banking, corporate banking, and asset management services through a coast-to-coast branch network.

Why Are We Wary of PNC?

1. Flat sales over the last two years suggest it must find different ways to grow during this cycle
2. Net interest margin of 2.7% is well below other banks, signaling its loans aren’t very profitable
3. Annual interest expenses are high relative to its profits, increasing the probability of its failure to meet certain borrowing obligations

At $174.27 per share, PNC Financial Services Group trades at 1.3x forward P/B. Read our free research report to see why you should think twice about including PNC in your portfolio.

One Stock to Buy:

Verra Mobility (VRRM)

Rolling One-Year Beta: 0.16

Aiming to wrap technology and data around a historically manual and paper-based industry, Verra Mobility (NYSE:VRRM) is a leading provider of smart mobility technology to address tolls and violations, title and registration services, as well as safety and traffic enforcement.

Why Will VRRM Beat the Market?

1. Annual revenue growth of 13.8% over the last five years was superb and indicates its market share increased during this cycle
2. Offerings are difficult to replicate at scale and lead to a best-in-class gross margin of 62.1%
3. Strong free cash flow margin of 20% enables it to reinvest or return capital consistently, and its growing cash flow gives it even more resources to deploy

Verra Mobility is trading at $24.24 per share, or 17.6x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

High-Quality Stocks for All Market Conditions

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today